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MINI REVIEW
Halal entrepreneurship from Maqasid-al-Sharia’h perspective: inseparable
concept for Halalpreneurs
Abdullah, M.A. and Azam, M.S.E.
International Institute for Halal Research and Training (INHART), International Islamic University
Malaysia (IIUM), 53000 Gombak, Malaysia
Article history: Abstract
Received: 8 August 2019
Received in revised form: 26
October 2019
Entrepreneurship has become one of the vital activities for economic development. It is
Accepted: 15 December synonymous with job creation, innovation, improvement in the societal well-being and
2019 economic growth in developed and developing countries alike. There is great interest in
Available Online: 10 entrepreneurship globally as well as in Malaysia. Over the past few years, many
February 2020
individuals, as well as families, are actively engaged with the small business. Also, in light
Keywords: of the 2013 GEM study, 12.7% of Americans are effectively occupied with beginning a
Halal, business or are the proprietor/director of a business that is under three years of age.
Entrepreneurship, Simultaneously, the Halal industry, that represents the global Islamic economy, is the
Maqasid-al-Shariah,
Halalpreneur, fastest-growing market in the world with $2.3 trillion market value. Halal entrepreneurs
Halalpreneurship (Halalpreneurs) are the major contributors to this achievement as they constitute a
significant portion of the total establishment in most of the Muslim countries. That is the
DOI:
https://doi.org/10.26656/fr.2017.4(S1).S07
reason Entrepreneurship has turned into a conventional term that depicts a wide range of
practices that include being innovative, devilish and tricky. Entrepreneurship has been
defined by many scholars, researchers, industry players, and academicians globally which
have also been perceived in the same way by most of the economies around the world.
However, the Islamic economy looks at the concept of ‘entrepreneurship’ in a different
way and perceives it as ‘Halalpreneurship’. To define entrepreneurship in the halal
industry, although, the term ‘Halalpreneurship’ is being used, surprisingly the term has
not been defined properly yet. It is essential for the Muslim entrepreneurs to have a proper
understanding of Halalpreneurship from Maqasid-al-Shariah perspective. Such point of
view is crucial to justify the term in the Halal industry and differentiate from conventional
entrepreneurs. On this context, this paper provides concept and definition of
Halalpreneurship justifying from the perspective of Maqasid-al-Sharia’h. It also
identifies the differences between Halalpreneurs and entrepreneurs using secondary
resources available in the forms of literature, research papers, journal papers, articles,
conference papers, online publications, etc. The findings of the study will clarify the
concept of Halalpreneurship from Maqasid-al-Sharia’h perspective and recognize
Halalpreneurs distinguished from conventional entrepreneurs.
Islamic law. Every business activity for any economy are comprised of a research paper, thesis, journal articles,
based on three concepts in Islam, namely livelihood (al- books, explanation of Al-Quran and Hadith, online
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rizq), permissible (Halal), and prohibited (Haram) which articles, and secondary data from different statistical
are also founded by the five objectives of Maqasid-al- website and research papers.
Shariah (Faizal et al., 2013). Global halal industry, which
also represents the global Islamic economy, has been Adopting the methodology, as mentioned above, the
identified as the fastest-growing market in the global following sections of the paper start with reviewing the
economy as the consumers around the world are literature on the definition of entrepreneurship and
becoming aware of the concept ‘halal’ which is not Halalpreneurship followed by the review of
anymore confined to food only (Thomson Reuters, Halalpreneurship from Maqasid-al-Shariah perspective.
2018). The industry is growing at 20% per year Additionally, before drawing the conclusion, the paper
estimating a value of US$560 billion (Elasrag, 2016). As discusses the differences between Halalpreneurs and
of 2017, the total estimated value of the global halal entrepreneurs by reviewing literature from different
market was US$4.54 trillion and expected to reach aspects.
US$9.71 trillion by 2025 (Thomson Reuters, 2018). The
joining of moral qualities alongside religious qualities 3. Review on definition
opens up the limit of the halal industry from 2.8 billion To achieve the objectives of the study this part of
Muslim shoppers to non-Muslim customer also around this paper reviews the works of literature to provide a
the globe. comprehensive definition of Halalpreneurship or halal
Therefore, it is the essence of time for all entrepreneurship. It starts with reviewing the
entrepreneurs, especially Muslim entrepreneurs, to know conventional definition of entrepreneurship in brief
the concept of Halalpreneurship and looking into it followed by reviewing the definition of
through Maqasid-al-Shariah perspective. Such point of Halalpreneurship.
view of Halalpreneurship explains how Halalpreneurs 3.1 Entrepreneurship
differ from conventional entrepreneur, what, how and for
whom to produce in the economy, who are the Entrepreneurship stems from the originates from the
stakeholders, what are the motivations, and what is the French word entreprendre signifying 'to embrace or to
scope of knowledge in Halalpreneurship? On this take in one's very own hands. Business enterprise can be
regard, the aim of this paper is to investigate the history depicted as a procedure of activity a business person
of entrepreneurship in Islam and clarifies the concept and attempts to build up his venture. It is a creative activity
definition of Halalpreneurship. Another objective is to that is based on the ability to create and establish
justify Halalpreneurship through Maqasid-al-Shariah something from nearly nothing. Entrepreneurs are risk-
perspective as an inseparable concept for Halalpreneurs. takers who react to opportunities, bear uncertainty and
Simultaneously, it tries to differentiate Halalpreneurs balance the supply and demand in the specific market
from conventional entrepreneurs by examining the (Kuratko, 2016). As per Peter Drucker, Entrepreneurship
different aspects of entrepreneurship from Maqasid-al- is characterized as 'a methodical advancement, which
Shariah view. This paper fulfills the urgent demand of comprises in the deliberate and sorted outlook for
the global Halal industry, as stated in the report Thomson changes, and it is the orderly examination of the open
Reuters (2018), clarifying the concept and definition of doors such changes may offer for financial and social
Halalpreneurship which will help the business ventures development.' The field of entrepreneurship is likewise
in the Halal industry differentiate themselves from characterized by Shane and Venkataraman (2000) as the
conventional entrepreneurs. This perspective will investigation of chances to make future item and
motivate them to subscribe for more halal business and administrations including the methodology, the general
contribute to the Islamic economy. It can also be useful population in control and what is being delivered.
for policymakers providing effective and suitable Rindova et al. (2009) have characterized business
policies to develop training programs on entrepreneurship as the endeavors to achieve novel
Halalpreneurship, halal marketing and other areas of cultural, social, monetary and institutional conditions
Halal industry. through the activities of an individual or gathering of
individuals. Low and MacMillan (1988), Gartner, (1988)
and Lumpkin and Dess, (1996) defined entrepreneurship
2. Methodology
as the creation of new enterprises or organizations.
To achieve the objectives of this paper, content Entrepreneurship may also mean taking advantage of
analysis was adopted. The content analysis comprised of opportunities by novel combinations of resources in
an extensive literature review from previous studies that ways which affect the marketplace. This is regardless of
the resources that the entrepreneurs are controlling. majority of the capacities, exercises, and activities
related to the view of chances and formation of
The word ‘entrepreneur’ immediately conjures up
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associations to seek after them. The halal innovative
images of business icons like Steve Jobs or Bill Gates. procedure is a complex phenomenon; be that as it may,
While these rich, famous and successful individuals can this procedure is significant in comprehension
be inspirational for some, most of us would find it halalpreneurial development.
difficult to associate our own lives, personalities or
abilities with them. Business Dictionary characterizes Halalpreneurship is an essential part of the Islamic
enterprise as the limit and eagerness to create, compose religion. Moreover, it is considered as jihad fi sabilillah
and deal with a business adventure alongside any of its (done in earnest in order to uphold thi teachings of Islam
dangers so as to make a benefit. In Investopedia, an and elevate its symbol), to be a source of livelihood to
entrepreneur is a person who, as opposed to filling in as a the community (produce goods, provide services, create
worker, establishes and maintains a private company, jobs, eradicate poverty, eradicate social, criminal and all
expecting every one of the dangers and prizes of the wrongdoing. On top of that, worship and righteous deeds
endeavor. The business entrepreneurship is normally are deeds to bridge the relationship between mankind
observed as a trend-setter, a wellspring of new thoughts, and Allah Subhanahu Wa Taala (SWT) (Kedah et al.,
products, administrations, and business/or methods. 2015).
Also, in financial matters, business enterprise joined with
the land, work, regular assets, and capital can deliver a Imam Al-Ghazali has written in his Ihya Ulum al-
benefit (Schaper et al., 2011). Din:
It has been realized from the above reviews of It is compulsory upon every Muslim who is involved
entrepreneurship that the definition is more or less with it (business and trading), to study the laws of buying
similar. The conventional entrepreneurs are more and selling because the seeking of knowledge is a duty
focused on market demand and supply while taking risk upon every Muslim. When we say the seeking knowledge
and uncertainty (Kuratko, 2016). They intend to make is such a duty, we also mean knowledge of all those
social development deliberately without considering the affairs of trade and business. Those in service and
specific need and specific target consumer i.e. focused employment should know the laws applying to them and
on making a profit (definition of Peter Drucker, and those who work for a living should know the laws (as
Shane and Venkataraman). Additionally, entrepreneurs related to them), no matter what occupation he is in. In
are to take the advantages of available resources only such a way, they will become aware of the things which
while affecting the market in case of scarcity of the cause their acts to be illegal according to the shari'a;
resources (Lumpkin and Gartner definition). Moreover, and they will be able to avoid these acts. When there are
scholars have tried to make ethical integration to the some rare or uncommon cases or instances which one
definition for entrepreneurs to become honest, socially does not know whether is halal or haram, one should not
responsible, and not to focus making profit only by any act upon it until such time he has the opportunity to
means (Emami, 2012; Oukil, 2013). Therefore, the inquire the matter from the learned scholars (of Islam).
following look into the definition of Halalpreneurship to From the above quotation it is very clear about the
see the differences from the conventional one. ethical and moral responsibilities prescribed in Islam for
3.2 Halalpreneurship any Muslim entrepreneur (Halalpreneur). Moreover, it is
the consensus of the Muslim scholars that is not
Halalpreneurship is holistic in Islam entails permissible for a Muslim person to start an affair until he
entrepreneurship as an element that is not separated from or she identifies what Allah has obtained in the matter.
Islam. Halalpreneurship is the entrepreneurship that is This is also applicable for those who would like to be
within Shari’ah’s scope (Aqidah, Fiqh, Akhlaq) so that engaged in business and trading, or accept an offer from
its activities are not alienated from obligations in Islam. an employer, which to make a loan or invest. Halal
Halalpreneurship includes the role of the human being earnings bring the love of Allah SWT, enlightenment,
as a Khalifah (Caliph) in the world, to develop and knowledge, righteous thoughts, courage and
prosper the world; means the activities of attentiveness. A Halalpreneur is supposed to take care of
entrepreneurship should contribute to the good and these matters in his/her Halalpreneurship.
prosperity of society, Ummah and humanity.
Additionally, Halalpreneurship also avoids any
Halalpreneurship is a recently created idea that joins matter which is haram (not permissible) in Islam.
halal advancement to business exercises that are Halalpreneurs perceive the haram (prohibited) earnings
executed as halalpreneurial activities. It includes the as irreligiousness, bring overwhelmed by one’s own
desire, the absence of courage and destruction of one’s limits in [the matter of] taking life. Indeed, he has
faith in Allah SWT. It is mentioned in Al-Quran- been supported [by the law]”. (Al-Qur’an, 17: 33)
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88); What is halal is enough and what is haram is prayer has been concluded, disperse within the land and
redundant; Islam does not limit the Muslim’s options, seek from the bounty of Allah, and remember Allah often
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instead it makes wider choices and alternatives. For that you may succeed (10). (Al-Qur’an, 62: 9-10)
instance, Allah SWT prohibits riba (usury) but
encourages the profitable trade; Falsely representing This encourages Muslims to be engaged in business
haram as halal is prohibited (Sahih al-Bukhari, 5590); and trading while not neglecting the ibadah. Hence, the
Good intention does not make the haram acceptable guiding principles of Halalpreneurs are from the Al-
(Sunan Abi Dawud, 59); Doubtful (shubhah) should be Quran and Hadith that are in coordination with the five
avoided as mentioned in the Hadith (Jami` at-Tirmidhi, objectives of Maqasid-al-Shari’ah. The first objective of
1205) that is highlighted earlier in this section; Protecting the Religion can be addressed by coming up
Compelling necessity (darurah) dictates exception; with ideas, products, and services that facilitate the
Islam is not unmindful to the necessities of life, to their practice of religion, calling to it, teaching it, providing
magnitude, nor to human weakness and capacity to face freedom of religion and other incentives for proper
them. Therefore, on the occasion of necessity, the spiritual development (Kayed and Hassan, 2011).
prohibition is removed to suit the situation (Al-Qur’an, Halalpreneurs aims to achieve the second objective
2: 173). by enhancing human life, protecting it, avoiding harmful
Now, that the objectives of Maqasid Shari'ah, as or toxic products. Simultaneously, Protection of Lineage
well as halal and haram, have been explained, or Offspring can be addressed by encouraging marriage,
entrepreneurs can be defined as Halalpreneurs while forbidding haram relationships, selecting a healthy
fulfilling the Shariah requirements and other Halal family to minimize dangerous diseases, healthy
standards, which are also set in line with Shariah, for upbringing. Halalpreneurs can also play a significant
respective countries. role in the development of education, the prohibition of
intoxicant and alcohols that might damage the brain and
4.3 Halalpreneurs intellectual ability. Finally, Protection of Material
Wealth or Property- To be preserved and enriched
Based on the reviewed works of literature and through opening alternative sustainable ways for its
analogy of different references from Quran and Hadith as generation, utilization, distribution and growth on one
mentioned earlier sections of this paper, it can be hand and also blocking means that hinder its generation,
asserted that any Muslim entrepreneur who produces circulation, consumption, and growth. The entrepreneur
goods and services that follow and comply with Maqasid focuses on the profit and the county law in the practice
-al-Shari’ah is known as Halalpreneurs. However, Non- of their business. The five pillars are not propriety, nor in
Muslim entrepreneurs are allowed to be Halalpreneurs the description of the scope. While on the other hand,
by Islamic scholars based on maslahah ‘Public Interest’ Halalpreneurs must fulfill these pillars first for their
for the benefit of Ummah and mankind, if they comply products or services to be halal.
with the Sahri’ah laws in the products and services
provided. The concept of and definition of both
Halalpreneurship and Halalpreneur have been explained
Halalpreneurs are ‘khalifah’ and have the till this point of this paper. Moreover, a close observation
responsibilities to develop prosperity and see business as of the concept Halalpreneur was also made from the
part of ‘ibadah’ or good deed through the fulfillment of perspective of Maqasid-al-Sharia’h. The following
fardhu kifayah (communal obligation). While the section provides more understanding of
Western business person is driven towards enterprise for Halalpreneurship by identifying the differences from
the most part independent from anyone else intrigue and conventional entrepreneurs and stating the characteristics
the longing for individual benefit, the Muslim business of Halalpreneurs.
visionary begins a business with the expectation of
satisfying The Almighty Allah SWT (Kedah et al., 2015).
5. Halalpreneurs VS entrepreneurs
In other words, a Halalpreneur regards his or her The holistic characteristics and objectives of
activities as ibadah in the frame of earning a halal living, Halalpreneurs make them unique and different from
as declared in Surah Al-Juma’ah: entrepreneurs. With the differentiated motives and aims,
O you who have believed, when [the adhan] is called Halalpreneurs are expected to manage their venture
for the prayer on the day of Jumu'ah [Friday], then successfully and demonstrate a better performance
proceed to the remembrance of Allah and leave trade. regarding trust and belief towards Islam (Hamid and
That is better for you if you only knew (9). And when the Sa’ari, 2011). Halalpreneurs can be deviated raising a
number of questions; such as, what to produce, how to
produce, for whom to produce, what are the motivations, Halalpreneurs decide how to produce efficiently
and what are the personal characteristics of keeping in view their profit and motive. Resources are
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The conventional entrepreneur is seeking profit A number of religious, moral and ethical
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before everything else. Though profit maximizing is not characteristics, that are developed from the Islamic
forbidden in Islam, profit is not the main motive of values, significantly distinguishes Halalpreneurs from
Halalpreneurs. Halalpreneurs should look for God's entrepreneurs. Firstly, Takwa is the most important
favor over every other factor. A Halalpreneur performs attribute of Halalpreneurs that lead them towards
business isn't exclusively for the benefit, yet most success making lots of profits through their business
importantly, to satisfy the 'fardhu kifayah'. Subsequently, activities. In line with this faith, Halal becomes the first
Halalpreneurs ought to vary from different business priority for Halalpreneurs. As Allah recommends
people in their thought processes and points. It is trusted consuming Halal (Al Quran 5:88) as well as earn Halal
that on the off chance that they can deal with their (Al-Quran 2:168). Halalpreneurs are also expected to
business effectively, they ought to likewise have great behave responsibly both for consumption and expense as
execution as far as confidence and conviction towards business activities are influenced by the prescription of
Allah SWT, as they are aiming for al-Falah in the not wasting by Allah (Al-Quran 7:31). Another
hereafter (Soltanian et al., 2016). Business in Islam is characteristic of Halalpreneurs was mentioned by Faizal
exceptionally respected, and Islam gives the motivators et al. (2013) in his study is to prioritize worship to Allah
as well as the helpful system for financial and enterprise SWT which was also identified Sadeq (1977) on the basis
advancement in the light of the elucidation of the of Quranic verses where entrepreneurship (worldly
Qur'anic refrain and on the numerous customs of the affairs) is encouraged but after praying (Al-Quran 62:10,
Prophet Muhammad (PBUH). Allah SWT says: 15:67). While prioritizing worship to Allah SWT
Halalpreneurs become trustworthy in terms of both
“And We have made for you therein means of living social and their business conduct. Thus, trustworthy is
and [for] those for whom you are not providers.” (Al- another characteristic of Halalpreneurs which has been
Qur’an, 15:20) mentioned by the Prophet (PBUH) himself. The Prophet
5.5 Who are the stakeholders (PBUH) encouraged truthful and trustworthy merchant to
be with him together with martyrs on the day of
In the conventional entrepreneurship, stakeholders Judgement (Al-Tirmidhi, 14: 1213).
include the supply chain: owners, suppliers,
manufacturers, workers, financiers, customers, Halalpreneurs are also philanthropists. They
community and the whole nation affected. Islam looks at contribute to social welfare by providing Zakat, which is
the ownership differently from either capitalism or one of the five obligations for all Muslims. Being
socialism. For instance, in capitalism, there is concern about social welfare through charity activities
unrestricted private ownership of property that leads to and providing Zakat has been stated in many places in
monopolies. While socialism has no private ownership Quran (Al-Quran 2:3, 43, 83, 177, 7:156, 19:31, 19:55,
at all. 21:73, 22:35, 41, 78, 23:4, 27:3, 30:39, 31:4, 41:7 and
more). Therefore, Halalpreneurs are expected to
From the perspective of Maqasid-al-Shari’ah, Islam consider themselves in the position of an Islamic
protects the right of property without interference with business organization and fulfill their philanthropic
the good of community ‘maslahah’ and while the responsibility as prescribed in Sharia’h.
property is achieved in a halal way. Having said that, the
concept of stakeholders in Islam recognized that Last but not the least, an additional requirement is
everything belongs to Allah SWT and He distributed the the knowledge of Islam and Shari’ah concept, halalan
wealth and prosperity among His creatures with wisdom tayyiban concept and the categories of Maqasid-al-
and reasoning that we, human, do not understand. And as Shari’ah for an individual be a Halalpreneur. In other
khalifah, we are entrusted to manage and develop the words, a halalpreneur is not necessary a Muslim, as non-
resources that Allah SWT has created and offered Muslims could be Halalpreneurs if they possess the
according to the Maqasid-al-Shari’ah. In this context, required knowledge. For instance, the halal concept
stakeholders in Halalpreneurship are the same as the should be implemented in the procurement process,
conventional one, with the focus of all holders being production, packaging, storage, logistics, and others. In
under the umbrella of the provision of Allah SWT. this manner, halal learning is crucial to be one of the
Therefore, Halalpreneurs here is fulfilling the ‘fardhu criteria for Halalpreneurs. Non-Muslim Halalpreneurs is
kifayah’ by serving the ummah and humanity and allowed under the condition of public interest
provide extra attention to all details of the supply chain ‘Maslahah’. Maslahah is an Arabic expression that, in
from manufacturing to the end products with the Ihsan. law and social morals, signifies "the basic social great or
welfare." Maslahah in contrast to its antonym, mafsadah, studies. Future study may enhance the concept
which means "that which causes or constitutes harm." As ‘Halalpreneurs’ itself with detail deliberation.
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